Financial Fundamentals: It's time to get your financial house in order

Many Americans have what you might call a "random assortment of financial assets." That is, they may have purchased a few stocks and bonds from one broker, a few mutual funds from another. They have a Roth IRA at one bank and a traditional IRA at a different another, several life insurance policies with different companies.

They may have some certificates of deposit at the credit union or bank, some U.S. savings bonds, a passbook savings account and, perhaps, some college savings plans for their kids or grandkids. They probably have a 401(k) or similar qualified retirement plan with their current employer. They also may have an old 401(k) with a previous employer they just left because they never seem to have time to deal with it.

The result over time is this "random assortment of financial assets."

Does this describe your financial situation? Have you often wondered how nice it would be to have things in some kind of order but just don't ever seem to have the time?

Let me introduce you to the concept of "comprehensive financial planning." Comprehensive financial planning is taking this "random assortment of financial assets" and bringing everything together in a more manageable and organized plan.

Obviously, if you want to take the time to research, plan and educate yourself, you could become your own personal financial planner. If you don't want to take the time, there is an easier way. Consider meeting with a certified financial planner who has been educated and trained to undertake this daunting task for you.

Here are the basic requirements to become a certified financial planner:

Education: a certified financial planner candidate must have a bachelor's degree and three years of financial planning-related experience, in addition to completing the courses of study at a college or university that offers a financial planning curriculum, including those registered with the certified financial planner board.

Ethics: Certified financial planner candidates must agree to adhere to the certified financial planner board's code of ethics and professional responsibility. The board reviews and investigates candidates' backgrounds.

American consumers have a tendency to think all financial advisers are created equal, that they all are stockbrokers or financial salespeople. However, the primary function of a stockbroker, insurance agent or financial salesperson is to sell financial products.

Anyone can call himself or herself a "financial planner" or "financial adviser," but only those who have fulfilled the requirements of the certified financial planner board can use its certification mark. The main purpose of a certified financial planner is to help clients bring their financial house into order, crystallize their goals and learn to manage their personal finances in order to achieve their objectives for financial independence. This may or may not involve the purchase of securities, insurance or other financial products, depending on the needs and objectives of the client's financial plan.

Working with a certified financial planner is like having your own personal coach for your finances and investments. He or she should be a true professional and put the best interests of the client first, not just the sale of products. Don't you think it's about time to get your financial house in order?

Grover Ranz is a certified financial planner and a member of the Ark-La-Tex chapter of the Financial Planning Association, whose members contribute to this column weekly. If you have questions or topics you would like to see addressed in this space, send inquiries by mail to Financial Fundamentals in care of The Times, Money/Business, 222 Lake St., Shreveport LA 71101.

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Financial Fundamentals: It's time to get your financial house in order

Working with a certified financial planner is like having your own personal coach for your finances and investments. He or she should be a true professional and put the best interests of the client